MUNICH, June 23,
2022 /PRNewswire/ -- Analysis from the Smart
Payment Association (SPA) confirms that the global semiconductor
(chip) shortage will continue throughout 2023, severely impacting
the delivery of payment cards worldwide.
This ongoing supply challenge results from a range of factors
including post-COVID recovery leading to a surge in demand of
Additionally, payment card deliveries are suffering from
extended lead times for key raw material supplies such as plastic,
metal and other components of a smart card. This is due to various
factors including recent COVID-related factory shutdowns in
China, and global supply chain
disruptions created by materials shortages and freight capacities
still not at the pre-COVID level.
While these factors continue to exert pressures, the payment
card manufacturers in the SPA1 do their utmost, together
with their respective customers, to design and implement card
supply risk mitigation strategies. These include robust inventory
management, optimizing utilization of all available products and
stock levels, greater forecast accuracy, and ever-closer
collaboration with respective suppliers to reduce impact.
As noted in the SPA communication of June 2021, the uninterrupted supply of payment
cards is essential to the social and economic lives of billions of
citizens around the globe. Most recent data2 from
the SPA show that more than 2.63 billion smart payment cards and
modules3 were shipped worldwide during
2021. The SPA believes the shipment volumes would have been even
higher had it not been for the chip shortage affecting the
industry. SPA members suffered from chip allocations preventing
them from fully serving the demand of their customers.
Payment cards are essential for everyday life and business - for
consumers and enterprises. 75% of the non-cash payment were made
with cards, in 20204 (including online payments,
directly or indirectly via digital wallets).
Payment cards are also critical for accessing cash.
SPA therefore highly supports recent legislation in the European
Union (European Chips Act5) categorising the provision
of semiconductors to the payment card industry as high priority. A
similar initiative has been launched by the United States
Government to strengthen the domestic semiconductor sector (Chips
and Fabs Act 6).
SPA urges once again the semiconductor industry to recognize the
essential character of payment cards, and to work with its members
to ensure resilient supply of chips in the future.
About the Smart Payment Association (SPA)
The Smart Payment Association (SPA) is the trade body of the
cards and mobile payments industry. SPA addresses the challenges of
a fast-evolving payment ecosystem, promoting innovation, security,
and interoperability of payment instruments. SPA works closely with
regulators and standardization bodies, offering leadership and
expert guidance to help its members and their customers adopt new
payment technologies of today and tomorrow. For more information on
the SPA, visit our website:
Press contact: Stéphanie de Labriolle
1 The payment card manufacturers in the SPA are
Austria Card, G+D, IDEMIA, Thales
2 The following companies participate in the SPA
Market Monitoring process: CPI, G+D, IDEMIA, NXP,
3 Embedded in the payment card body during
manufacturing, the module consists of the encapsulated smart card
chip, attached and electrically bonded to the micro connector or
5 European Chips Act: Communication, Regulation,
Joint Undertaking and Recommendation | Shaping Europe's digital
6 See for instance: CHIPS for America Act & FABS
Act - Semiconductor Industry Association (semiconductors.org)
SOURCE Smart Payment Association